Cash loses top spot to electronic card payments in eurozone for first time
Cards were used for 46% of all euros paid at points of sales in the eurozone, beating cash (42%) for the first time.
Cash is losing its top spot as the eurozone's dominant means of payment, a European Central Bank survey has shown, in a historic shift for a part of the world that has lagged behind peers in switching to new ways of settling bills.
The ECB survey showed that cards took the lion's share of money spent at shops, restaurants, and other points of sale in the eurozone for the first time since the central bank started to poll consumers in 2016.
Cash is a politically divisive topic, and consumer advocates in Ireland and elsewhere have argued that it upholds privacy and defends against bank fees.
The ECB's survey showed consumers in the eurozone were finally yielding to the convenience of card and digital payments, which have long prevailed in other parts of the world such as the US.
The survey showed cards were used for 46% of all euros paid at points of sales, beating cash (42%) for the first time. Mobile app payments and other methods including cheques, credit transfers, loyalty points, vouchers, and gift cards accounted for the remainder.
Cash retained its primacy in terms of the number of transactions, but its lead narrowed to just 59% compared with 72% in 2019.
Cash still accounts for 70% or more of point-of-sales payments in Malta, Slovenia, and Austria, while it stood at around 20% in the Netherlands and Finland. In Ireland, it accounts for 54% of transactions.
Contrary to expectations, the Covid-19 pandemic was not seen as a turning point by respondents, with over half saying they were using cash just as often as before the pandemic era.
But 37% of respondents said they were buying more often online, which explained a doubling in online payments for one-off purchases to 28% from 14% in 2019, based on the value of transactions.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
